Macroeconomic Determinants of Remittances: Evidence from India

21 Pages Posted: 3 Mar 2006

Date Written: December 2005


Remittances to India have been growing rapidly since 1991, making it one of the largest recipients of remittances. This paper analyzes the determinants of remittances to India and finds that their growth over time can be explained by the increase in migration and total earnings of the migrants. Remittances are also affected by the economic environment in source countries, and appear to be countercyclicalthat is, higher during periods of low economic growth in India. None of the remaining economic or political variables considered in the paper, including political uncertainty, interest rates, or exchange rate depreciation, are found to affect remittances significantly.

Keywords: Remittances, Balance of payments, India

JEL Classification: F20, F22

Suggested Citation

Gupta, Poonam, Macroeconomic Determinants of Remittances: Evidence from India (December 2005). Available at SSRN: or

Poonam Gupta (Contact Author)

Delhi School of Economics ( email )

Department of Economics
Delhi University
Delhi, Delhi 110007

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